This might ser
ve as an eye-opener to a few and might be not-so-surprising for some others. Today, I’m starting off a new tag called ‘Profit’. I hope to do more such stories about real successes by companies. And in the end, I hope this serves as an inspiration and a starting point for you to make those very changes at your company – and hopefully impress your boss too!!I just came across this article which talks about how Williams-Sonoma, a major retailer posted a profit in these troubled times by tweaking their supply chain and managing their costs effectively. What makes it interesting is that they managed this turnaround after facing the threat of a buyout. Here’s an excerpt from the article.
Retailer Williams-Sonoma says improved supply chain management, including cuts in transportation costs, were a major reason the company swung to a profit in its recent fiscal third quarter despite slipping store sales.
The home furnishings specialist removed $150 million in merchandise inventories from its holdings, cutting the inventory count 21.5 percent, while adding $200 million in cash to its balance sheet over that time.
The result was a $7.3 million net profit in the quarter ending Nov. 1 for a company that lost $11 million in the same quarter a year ago even as net retail sales fell 3 percent.
That included, he said, “the coastal consolidation of our large-cube inventory, and we are now shipping together orders that historically were delivered in multiple shipments. We are also consolidating six third-party furniture delivery hubs into one company-operated hub in Columbus, Ohio,” Lester said.
And not so surprisingly, their shares have been strong through this troubled economy. The image shows their YTD for 2009. I wonder what Bed, Bath and Beyond has to say to that.
